VIC Market Update – 26/10/2018

Rains over the last 10 days continue to deliver benefits across Victoria, particularly for pulse crops which seem to have benefited the most.

Hay cutting has mostly finished, although there is still a lot to be bailed due to recent rain. There will be a lot more wheat hay (vs barley) in most areas this year with question marks over wheat’s ability to finish well in the dry conditions. Despite the quantity cut for hay, prices continue to hold at around $250-300/MT.

I’ve been speaking with summer and forage croppers over the last few weeks. While there are some strong prices for corn as it seeks to be a substitute for grain, high water prices and tight seed availability across corn and sorghum mean some will not plant. Forage crop shortages in northern Victoria has northern dairy farmers looking to grow their own corn silage crops to ensure they have enough supplement feed for summer. Rapidly rising feed costs also has dairy farmers and other consumers keeping a keen eye on grain moving into Vic from other states, which they hope will ease prices.

Both old and new crop cereal values continue to soften up to $10/MT as we approach harvest. Softening prices look to be a result of buyers stepping out of the market as we get closer to harvest. However, based on the volume of grain around, it’s suspected these falls will be short lived.

There has been reports of frosting in the Western Districts this week. Time will tell, but hopefully it’s nothing like last seasons’ event.

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Pictured: Wheat crop near North West of Bendigo.

Prices as at 25th October

* View of current market pricing. Does not represent current Agfarm bids.